New BCIS methodology for Tender Price Index estimates
BCIS has introduced a new methodology for estimating the latest All-in Tender Price Index results.
16 JUL 2019
The early estimate for the BCIS All-in Tender Price Index (TPI) for 2nd quarter 2019 is based on a rise of 0.25% compared with the previous quarter*.
The estimate is the consensus of the BCIS TPI Panel** based on the analysed Delphi survey results. It does not necessarily represent the views of individual participants.
The resultant 2nd quarter figure shows a 4.3% increase in the year from 2nd quarter 2018***.
At least 60% of panel members reported differences in price movements between regions, sizes of projects, procurement routes and sectors.
Of the panel members, 60% reported M+E prices rising faster than building trades
The Panel also observed the following in the latest quarter:
* The BCIS TPI Panel estimate has been applied to the previous quarter index and rounded to the nearest whole number for publication.
** BCIS has recruited a panel of practising cost consultants from firms involved in multiple tenders in each quarter to provide an early estimate of tender price movement in the latest quarter based on a panel (Delphi) survey approach.
*** Basis of BCIS Tender Price Index. TPI figures prior to 4th quarter 2018 are based on project indices, generally single-stage, traditional procurement, average value < £5m, (minimum £100,000, no maximum). Excludes M+E and other specialist trades, e.g. facades. BCIS has assumed this reflects market projects let on single-stage design and build and specification and drawings. Indices are normalised for location, size and procurement. Percentage changes are mid-quarter to mid-quarter.